Tax and Financial Advisor: Who Does What, When You Need Each, and How a Fractional CFO Bridges the Gap

A Bennett Financials Guide for Business Owners Who Want Clarity (and Fewer Surprises)

This guide is for business owners seeking clarity on when to use a tax advisor, a financial advisor, or both. Understanding these roles helps you avoid costly mistakes and ensures your business and personal finances are aligned.

Most business owners know they need help from a tax and financial advisor—someone to help with taxes and someone to help with money. But when it’s time to hire support, the lines blur fast:

• Is my CPA also my financial advisor?
• Should my financial advisor be helping with tax strategy?
• Who should I ask about payroll taxes, estimated payments, and deductions?
• If I want to grow, who helps me plan—beyond filing returns?

The terms tax professional and financial advisor sound similar, but they typically serve very different roles. And when those roles aren’t clearly defined, you can end up with gaps: missed tax planning opportunities, poor cash planning, unnecessary risk, or big decisions made without a cohesive strategy.

At Bennett Financials, we often work alongside both tax professionals and financial advisors. Our fractional CFO role is to connect the dots—making sure your financial decisions, tax planning, reporting, and cash strategy all support your business goals.

This blog breaks down what each professional does, how they work together, and how a fractional CFO helps you get an integrated plan instead of disconnected advice.

When choosing a tax and financial advisor, it’s essential to look for a firm with a dedicated team of professionals who demonstrate a strong commitment to ethical standards and always put client interests first. The right partner will have the qualifications, specialized knowledge, and integrity needed to provide comprehensive, coordinated support for your financial goals.

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Both tax advisors and financial advisors play distinct roles in managing an individual’s financial health. Understanding these distinctions is key to making informed decisions for your business and personal finances.

Start with the big distinction: compliance vs. strategy

Many business owners assume these roles overlap heavily. In practice, the biggest difference is the center of gravity: the key differences between tax professionals and financial advisors lie in their primary responsibilities and expertise.

• A tax professional has a focus on tax compliance and tax optimization (filing accurately, minimizing tax liability legally, keeping you compliant).
• A financial advisor has a focus on personal wealth strategy (investments, retirement planning, insurance, estate planning coordination, and long-term goals).

Both can be strategic. But their primary lenses—and their day-to-day tools—are different.

Let’s look at what each professional does for business owners.

What a tax professional typically does for business owners

A tax professional, also known as a tax advisor, might be a certified public accountant (CPA), EA (Enrolled Agent), or a tax attorney depending on complexity. Tax advisors are typically CPAs with specialized training in tax law, which enables them to provide expert guidance on tax planning and compliance. Their expertise in understanding and applying current tax laws ensures that clients receive accurate advice and can optimize their financial strategies for tax advantages. A tax advisor specializes in minimizing tax liability and ensuring compliance with IRS regulations. For many business owners, your tax pro is responsible for:

Tax Compliance

• Preparing and filing federal, state, and local returns
• Filing business returns (corporation/partnership) and related schedules
• Ensuring accurate reporting and documentation
• Helping respond to notices or audits (varies by engagement)

Tax Planning

• Estimated tax planning
• Entity structure considerations (S-Corp vs. partnership vs. sole prop)
• Deduction strategy and documentation guidance
• Depreciation strategies and timing decisions
• Planning for major transactions (equipment purchase, sale of business, new state operations)

Tax strategies work best when they are integrated with your overall financial planning, ensuring that each decision supports your broader wealth management goals. By incorporating tax strategies into your wealth management approach, you can help avoid unexpected tax burdens that may arise from investment decisions.

Payroll Tax and Business Tax Coordination

• Guidance around payroll tax responsibilities
• Reviewing how payroll impacts taxes
• Supporting W-2/1099 considerations (often in coordination with payroll provider)

What tax professionals usually don’t do (by default):
They typically aren’t managing your weekly cash flow, building a hiring plan, creating KPI dashboards, or operationally forecasting the business unless you’ve specifically engaged them for advisory work.

With the tax professional’s role clarified, let’s move on to the financial advisor’s responsibilities.

What a financial advisor typically does for business owners

A financial advisor is often focused on your personal financial life, especially investments and long-term planning to help secure your financial future. Many financial advisors are certified financial planners (CFPs), and the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation is considered the gold standard for comprehensive financial planning. A financial advisor focuses on growing investments and managing wealth over the long term. A fiduciary is legally obligated to act in your best interests at all times, which is an important distinction when choosing a trustworthy advisor. Depending on the advisor’s model (fee-only, AUM-based, holistic planner, etc.), they may help with:

Investment Strategy

• Portfolio construction (risk tolerance, goals, time horizon): A tax and financial advisor helps you build a diversified portfolio that includes stocks, bonds, and other assets tailored to your risk tolerance, financial goals, and investment time horizon. Asset allocation and regular rebalancing are essential for managing risk to your principal and ensuring the security of your investments. Advisors also provide behavioral coaching, guiding clients through market volatility and helping them stay focused on long-term strategies.
• Asset allocation and rebalancing: Proper allocation of assets—such as stocks, bonds, and cash—helps manage risk and align your investments with your personal goals and life events. Rebalancing ensures your portfolio remains in line with your desired risk level and helps protect your principal from possible loss. It is important to understand that all investments carry the risk of possible loss, and changes in interest rates can significantly affect investment decisions and portfolio performance.
• Tax-efficient investing strategies (in coordination with tax planning): Advisors coordinate tax-efficient strategies with your overall investment plan, considering how each investment decision impacts your tax liability and long-term wealth. Remember, past performance is not indicative of future results, and future results cannot be guaranteed. Always consult with a qualified professional to understand the risks and security measures involved in your investment strategy.

Retirement Planning

• Retirement goals and projections
• Retirement account strategy (IRA, 401(k), SEP, Solo 401(k) depending on context)
• Withdrawal strategies and long-term sustainability

Insurance and Risk Planning

• Life insurance, disability insurance planning
• Long-term care planning (when applicable)
• Liability coverage considerations (often with an insurance broker)

Estate Planning Coordination

• Working with estate attorneys to align trusts/wills with financial goals and ensuring you have a comprehensive estate plan
• Beneficiary planning
• Philanthropy strategies

A sound financial plan must take into account the implications of taxes on investments and wealth transfer to ensure your estate plan supports your long-term goals.

Personal Financial Planning

• Net worth tracking
• College savings planning
• Major purchase planning (home, real estate investments, etc.)

Comprehensive financial planning involves understanding your entire financial situation, including assets, liabilities, income, and expenses. Effective financial planning should be tailored to your individual circumstances, taking into account your unique goals, risk tolerance, and tax situation. Holistic planning ensures that your investment strategies and retirement plans are tax-efficient and compliant with current tax laws.

What financial advisors usually don’t do (by default):
They typically aren’t maintaining your business books, closing monthly financials, managing payroll compliance, or building business operating budgets—unless they specialize in business advisory or coordinate with a CFO/controller.

Now that we’ve covered the primary responsibilities of each role, let’s explore where their expertise overlaps and why integration is important.

The overlap (and why it still feels confusing)

There are areas where tax and financial advice naturally meet, and integrated services are essential for comprehensive support. Many firms now offer both tax and financial advisory services under one roof, bringing together CPAs and financial advisors to provide holistic solutions. This approach allows clients to benefit from the expertise of multiple professionals working together.

• Tax-efficient investing (advisor + tax pro)
• Retirement plan setup for business owners (advisor + tax pro + payroll/provider)
• Entity structure impacts on owner pay and taxes (tax pro + CFO/finance)
• Big decisions like selling a business, buying a building, or adding partners (all hands)

Having both a CPA and a financial advisor can create advantages that go beyond what either can offer alone. Their collaboration can prevent significant blind spots in financial planning, ensuring that all aspects of your finances are considered. An integrated team of CPAs and financial advisors can also provide a single point of contact for clients, streamlining communication and making it easier to manage your financial goals.

But overlap doesn’t mean duplication. It means coordination.

The problem is that many owners don’t have someone responsible for integration. That’s where strategy can break down.

Next, let’s look at the common gaps that can occur when tax and financial advice aren’t coordinated.

Where business owners get stuck: common gaps between tax and financial advice

Gap 1: Tax planning happens too late

• Timing income and expenses
• Optimizing owner comp
• Retirement plan contributions
• Equipment purchases and depreciation strategy
• Multi-state planning
• Estimated tax accuracy

Gap 2: Business cash flow isn’t connected to tax obligations

• Quarterly estimated payments
• Payroll tax debits
• Year-end catch-up liabilities
• Swings from bonuses or distributions

Gap 3: Owner compensation isn’t managed intentionally

• W-2 wages vs distributions
• Retirement contribution limits
• Payroll tax burden
• Personal cash needs and saving goals

Gap 4: Financial statements aren’t decision-ready

• Monthly close discipline
• Accurate categorization
• Segment reporting
• Forward-looking forecasts

If your reporting is weak, both your tax plan and wealth plan are operating on incomplete data.

Understanding these gaps highlights the importance of knowing when to engage a tax professional, a financial advisor, or both. Let’s clarify when each is needed.

When you need a tax professional, a financial advisor, or both

You primarily need a tax professional when:

• You’re filing business returns and want compliance confidence
• Your income is changing or you have complex deductions
• You’re dealing with multi-state operations
• You need entity structure guidance
• You want proactive tax planning before year-end
• You’re facing notices, audits, or major transactions

You primarily need a financial advisor when:

• You want an investment strategy tied to your goals
• You need retirement planning and long-term projections
• You’re thinking about insurance and risk planning
• You want estate planning coordination
• You’re building personal wealth outside the business

You likely need both when:

• You have significant income variability
• You’re scaling and making hiring/capex decisions
• You’re setting up retirement plans through the business
• You’re buying/selling a business or raising capital
• You want coordinated planning for taxes + wealth + cash flow

You especially benefit from a fractional CFO when:

• Your business finances feel reactive
• Cash surprises are common
• Reporting is late or untrustworthy
• You’re hiring and scaling quickly
• You want year-round coordination between tax and personal planning
• You need a financial strategy that connects business operations to owner outcomes and helps you understand fractional shares, including their pros and risks

Now, let’s see how a fractional CFO can bridge these gaps and integrate your financial strategy.

How a fractional CFO fits in (Bennett Financials’ role)

A fractional CFO sits in the middle of business operations and strategic financial planning, responsible for developing a comprehensive financial strategy tailored to your business needs. At Bennett Financials, fractional CFO support often becomes the “integrator” by leveraging the expertise of various professionals, such as CPAs and financial advisors, to provide a holistic approach to your finances. This includes:

• Day-to-day accounting and reporting
• Operational planning (hiring, pricing, margins)
• Cash flow forecasting
• Tax planning coordination
• Owner compensation planning inputs
• Strategic decision analysis (buy vs lease, expansion, financing, etc.)

To achieve the best results, it is recommended to ensure that your advisors communicate directly with each other, rather than operating in silos.

A fractional CFO doesn’t replace your tax pro or your financial advisor. The CFO makes their work more effective by ensuring the underlying data and planning cadence exist.

Here’s what that looks like in practice.

Turning the Books into a Decision Tool

We help ensure:

• Monthly closes happen consistently
• The chart of accounts matches how you run the business
• Payroll taxes and liabilities reconcile cleanly
• Financials arrive fast enough to act on

When reporting is reliable, tax planning becomes proactive and wealth planning becomes realistic.

Building a Cash Plan that Includes Taxes

A CFO-level cash forecast includes:

• Payroll and payroll taxes
• Sales tax (if applicable)
• Quarterly estimates
• Annual tax payments
• Debt payments
• Planned capex
• Owner distributions

This reduces the “we had profit but no cash” problem—especially around tax season.

Coordinating Owner Pay and Distributions

We help model owner compensation scenarios so you can balance:

• Tax efficiency
• Cash flow needs
• Reinvestment goals
• Retirement plan strategy
• Risk tolerance

Your tax pro will guide compliance and strategy, but a CFO provides the operating model and cash reality behind those decisions.

Creating a Year-Round Planning Cadence

Instead of a once-a-year scramble, fractional CFO support can establish:

• Quarterly tax planning check-ins (with your tax pro)
• Monthly reporting and variance review
• Ongoing scenario planning
• Annual budget and reforecast cycles

That cadence is where “good advice” becomes “good execution.”

Now, let’s see how these roles work together in a real-world scenario.

A simple example: how these roles work together

Imagine a business owner planning to:

• Hire two key roles
• Increase marketing spend
• Upgrade equipment
• Contribute more to retirement
• Minimize tax surprises

Here’s how each professional supports these goals:

Role	Responsibilities
Fractional CFO (Bennett Financials)	Builds forecast, models scenarios, confirms cash runway, tracks margins, and sets reporting cadence
Tax Professional	Advises on deduction timing, entity/comp implications, estimated payments, depreciation approach
Financial Advisor	Aligns personal savings goals, retirement strategy, risk management, and investment plan. Financial advisors may be registered investment advisers who provide advisory services, offering personalized guidance and planning in compliance with regulatory standards.

The result is one coherent plan: growth decisions that make sense operationally, financially, and personally.

Disclaimer: The information provided in this example is intended for informational purposes only and is subject to change. It does not constitute specific legal, tax, or investment advice. For additional information or to verify an advisor’s credentials, consider using public databases such as FINRA’s BrokerCheck.

Summary: How to Choose the Right Tax and Financial Advisor

Choosing the right tax and financial advisor involves finding a partner with the right qualifications, ethical standards, and specialized knowledge. Look for professionals who demonstrate integrity, prioritize your interests, and have experience relevant to your business and personal financial needs. The right advisor will help you coordinate tax, business, and wealth strategies for optimal results.

The Bennett Financials takeaway

Tax professionals and financial advisors are both valuable—but they typically solve different problems.

• Your tax professional helps you stay compliant and optimize taxes legally.
• Your financial advisor helps you grow and protect personal wealth.
• A fractional CFO helps connect business decisions to both—by building accurate reporting, forecasting cash, coordinating planning, and turning strategy into execution.

At Bennett Financials, we’re often the “glue” that ensures your tax plan, business plan, and personal financial plan work together—so growth feels intentional, not chaotic.